When CNH Industrial was formed last year to include Fiat’s ag equipment, construction equiptment, commercial vehicle and powertrain business segments, it was assumed that ag would carry the load when it comes to revenues, profits, etc. The full-year 2014 financial results reinforced CNH Industrial’s reliance on its ag segment.
Last year, ag equipment sales accounted for 45% of CNHI’s net sales, but 84% of its operating profit. The operating margin for the farm machinery segment was 11.6% compared to 0.3% for commercial vehicles, 2.4% for construction equipment and 5% for powertrain operations.
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